asset management company: sbi funds management … - sbi blue... · 2018-05-16 · asset management...

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Asset Management Company:

SBI Funds Management Pvt. Ltd.

(A Joint Venture between State Bank of India & AMUNDI)

KEY INFORMATION MEMORANDUM

Product Labelling

This product is suitable for investors who are seeking*:

• Long term capital appreciation

• Investment in equity and equity-related instruments of large cap companies

*Investors should consult their financial advisers if in doubt about whether the product is suitable for them.

Continuous offer of Units at NAV related prices on ongoing basis

Sponsor: State Bank of India

Trustee Company: SBI Mutual Fund Trustee Company Pvt. Ltd. (CIN: U65991MH2003PTC138496)

Asset Management Company: SBI Funds Management Pvt. Ltd., (CIN: U65990MH1992PTC065289) Registered Office: 9th Floor, Crescenzo, C-38 & 39, G Block, Bandra Kurla Complex, Bandra (East), Mumbai - 400 051. Visit us at www.sbimf.com

This Key Information Memorandum (KIM) sets forth the information, which a prospective investor ought to know before investing. For further details of the Scheme/Mutual Fund, due diligence certificate by the AMC, Key Personnel, investors’ rights & services, risk factors, penalties & pending litigations etc. Investors should, before investment, refer to the Scheme Information Document and Statement of Additional Information available free of cost at any of the SBIFMPL branches or distributors or from the website www.sbimf.com. The Scheme particulars have been prepared in accordance with Securities and Exchange Board of India (Mutual Funds) Regulations 1996, as amended till date, and filed with Securities and Exchange Board of India (SEBI). The units being offered for public subscription have not been approved or disapproved by SEBI, nor has SEBI certified the accuracy or adequacy of this KIM.

http://www.sbimf.com/

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Type of Scheme An open ended equity scheme predominantly investing in large cap stocks

Investment Objective To provide investors with opportunities for long-term growth in capital through an active management of investments in a diversified basket of large cap equity stocks (as specified by SEBI/AMFI from time to time).

However, there can be no assurance that the investment objective of the scheme will be achieved.

Asset Allocation

Pattern

Asset Allocation Pattern of the Scheme

Instruments Indicative Allocation (% of total assets)

Risk Profile

Equity and Equity related Instruments of large cap companies*(including Derivatives)

80%-100% High

Other equities and equity related instruments

0%-20% High

Units issued by REIT/InVIT^ 0%-20% Medium to High

Debt instruments (including securitized debt)

0%-20% Medium

Money market instruments 0%-20% Low

• The scheme may engage in stock lending - upto 20% of the net assets of the scheme. • Exposure to derivatives instruments to the extent of 50% of the Net Assets as permitted by SEBI • The Scheme may seek investment opportunities in foreign securities including ADRs / GDRs / Foreign equity and debt securities subject to the Regulations. Such investment shall not exceed 20% of the net assets of the Scheme. • The scheme may invest in mutual fund units as permissible. • The Scheme may invest in repo in corporate debt. *Large Cap Stocks – 1st -100th company in terms of full market capitalization. This will be in line with limits/classification defined by AMFI/SEBI from time to time Other equities could include mid and small cap stocks. Mid Cap:101st to 250th company in terms of full market capitalization. Small Cap: 251st company onwards in terms of full market capitalization. The exposure across these stocks will be in line with limits/classification defined by AMFI/SEBI from time to time. ^The exposure will be in line with SEBI/AMFI limits specified from time to time For detailed asset allocation, please refer to the Scheme Information Document.

Investment Strategy The scheme follows a blend of growth and value style of investing. The scheme will follow a combination of top down and bottom-up approach to stock-picking and choose companies across sectors. The scheme will predominantly invest in diversified portfolio of large cap stocks. Large Cap Stocks are – 1st -100th company in terms of full market capitalization. This will be in line with limits/classification defined by AMFI/SEBI from time to time.

Risk Profile of the

Scheme

Mutual Fund Units involve investment risks including the possible loss of principal. Please read the SID

carefully for details on risk factors before investment. Scheme specific risk factors are summarized

below:

SBI Blue Chip Fund would be investing in Equity and equity related instruments of large cap companies

(including Derivatives), Other equities and equity related instruments, Units issued by REIT/InVIT,

Foreign securities, Debt instruments (including securitized debt) & Money Market Instruments. The

liquidity of the scheme’s investments is inherently restricted by trading volumes and settlement periods.

In the event of an inordinately large number of redemption requests, or of a restructuring of the

scheme’s investment portfolio, these periods may become significant. In view of the same, the Trustees

have the right in their sole discretion to limit redemptions (including suspending redemptions) under

certain circumstances.

The scheme shall be subject to risk associated with equity and equity related instruments, REITs/InVIT,

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debt and money market instruments, securitized debt, derivatives, foreign securities and repo

transactions in corporate debt securities. Besides, the scheme is also subjected to risk associated with

Liquidity Risk, Settlement Risk, Stock lending risk & Regulatory Risk associated with securities as detailed

in the SID.

Risk Control Investments in Equity and equity related instruments including derivatives, debt and money market instruments carry various risks such as inability to sell securities, trading volumes and settlement periods, market risk, interest rate risk, liquidity risk, default risk, reinvestment risk etc. Whilst such risks cannot be eliminated, they may be mitigated by diversification and hedging.

In order to mitigate the various risks, the portfolio of the Scheme will be constructed in accordance with the investment restriction specified under the Regulations which would help in mitigating certain risks relating to investments in securities market.

Further, the AMC has necessary framework in place for risk mitigation at an enterprise level. The Risk Management division is an independent division within the organization. Internal limits are defined and judiciously monitored. Risk indicators on various parameters are computed and are monitored on a regular basis. There is a Board level Committee, the Risk Management Committee of the Board, which enables a dedicated focus on risk factors and the relevant risk mitigates.

For risk control, the following may be noted: Liquidity risks: The liquidity of the Scheme’s investments may be inherently restricted by trading volumes, transfer procedures and settlement periods. Liquidity Risk can be partly mitigated by diversification, staggering of maturities as well as internal risk controls that lean towards purchase of liquid securities.

Interest Rate Risk: Changes in interest rates affect the prices of bonds. If interest rates rise the prices of bonds fall and vice versa. A well-diversified portfolio may help to mitigate this risk. Additionally, the fund will invest in securities maturing on or before the maturity of the fund. Hence, while the interim NAV will fluctuate in response to changes in interest rates, the final NAV will be more stable. To that extent the interest rate risk will be mitigated at the maturity of the scheme.

Credit Risks Credit risk shall be mitigated by investing in rated papers of the companies having the sound back ground, strong fundamentals, and quality of management and financial strength of the Company.

Volatility risks: There is the risk of volatility in markets due to external factors like liquidity flows, changes in the business environment, economic policy etc. The scheme will manage volatility risk through diversification. Further, the fund will invest in a basket of debt and money market securities maturing on or before maturity of the fund with a view to hold them till the maturity of the fund. To that extent the Volatility risk will be mitigated in the scheme. Further, the Investment Manager endeavours to invest in REITs/InvITs, where adequate due diligence and research has been performed by the Investment Manager. The Investment Manager also relies on its own research as well as third party research. This involves one-to-one meetings with the managements, attending conferences and analyst meets and also tele-conferences. The analysis will focus, amongst others, on the predictability and strength of cash flows, value of assets, capital structure, business prospects, policy environment, strength of management, responsiveness to business conditions, etc.

Plans /Options The scheme would have two plans viz Direct Plan & Regular Plan. Direct Plan: Direct Plan is only for investors who purchase /subscribe Units in a Scheme directly with the Mutual Fund and is not available for investors who route their investments through a Distributor. All the features of the Direct Plan under Scheme like the investment objective, asset allocation pattern, investment strategy, risk factors, facilities offered, load structure etc. will be the same except for a lower

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expense ratio as detailed in Section IV – Fees and Expenses – B. – Annual Recurring Expenses of the SID. Brokerage/Commission paid to distributors will not be paid / charged under the Direct Plan. Both the plans shall have a common portfolio. Eligible investors: All categories of investors as permitted under the Scheme Information Document of the Scheme are eligible to subscribe under Direct Plan. Modes for applying: Investments under Direct Plan can be made through various modes offered by the Mutual Fund for investing directly with the Mutual Fund [except through Stock Exchange Platforms for Mutual Funds and all other Platform(s) where investors’ applications for subscription of units are routed through Distributors]. How to apply: Investors desirous of subscribing under Direct Plan of a Scheme will have to ensure to indicate “Direct Plan” against the Scheme name in the application form. Investors should also indicate “Direct” in the ARN column of the application form. Regular Plan This Plan is for investors who wish to route their investment through any distributor. The default plan in following cases will be:

Scenario Broker Code mentioned by

the investor

Plan mentioned by the

investor

Default Plan to be

captured

1 Not mentioned Not mentioned Direct Plan

2 Not mentioned Direct Direct Plan

3 Not mentioned Regular Direct Plan

4 Mentioned Direct Direct Plan

5 Direct Not Mentioned Direct Plan

6 Direct Regular Direct Plan

7 Mentioned Regular Regular Plan

8 Mentioned Not Mentioned Regular Plan

In cases of wrong/ invalid/ incomplete ARN codes mentioned on the application form, the application

shall be processed under Regular Plan. The AMC shall contact and obtain the correct ARN code within 30

calendar days of the receipt of the application form from the investor/ distributor. In case, the correct

code is not received within 30 calendar days, the AMC shall reprocess the transaction under Direct Plan

from the date of application.

Default Options Both plans will have growth and dividend option. Between “Growth” or “Dividend” option, the default will be treated as “Growth”. Dividend option will have Reinvestment, Payout and Transfer facilities. Between “Reinvestment”, “Payout” or “Transfer”, the default will be treated as Reinvestment.

Applicable NAV For subscription of below Rs. 2 lakhs - In respect of valid applications received upto 3 p.m. by the

Mutual Fund at any of the OPAT of SBI Mutual Fund alongwith a local cheque or a demand draft payable

at par at the place where the application is received, the closing NAV of the day on which application is

received shall be applicable. In respect of valid applications received after 3 p.m. by the Mutual Fund at

any of the OPAT of SBI Mutual Fund alongwith a local cheque or a demand draft payable at par at the

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place where the application is received, the closing NAV of the next business day shall be applicable.

For subscription of Rs. 2 lakh & above: In respect of purchase of units of the scheme, the closing NAV of

the day on which the funds are available for utilization shall be applicable, provided the funds are

realised up to 3.00 pm on a business day, subject to the transaction being time stamped appropriately.

For Redemptions including switch-out: In respect of valid applications received on a business day, upto

the 3.00 pm by the Mutual Fund, same day’s closing NAV shall be applicable. In respect of valid

applications received after the 3.00 pm by the Mutual Fund, the closing NAV of the next business day

shall be applicable.

Minimum Application

Amount

Minimum Investment Amount: Rs. 5000/- and in multiples of Re. 1 thereafter

Additional Purchase Amount: Rs. 1000/- and in multiples of Re. 1 thereafter

Repurchase: Rs.1000/- or 100 Units or account balance whichever is lower. Please note that as a result

of redemption, if the outstanding balance amount falls below the minimum redemption amount as per

the scheme features, SBIMF reserves the right to redeem the balance units at applicable repurchase

price.

Minimum Amount of

SIP

Weekly – Minimum Rs 1000 & in multiples of Re. 1 thereafter for minimum 6 weeks

Monthly – Minimum Rs 1000 & in multiples of Re. 1 thereafter for minimum 6 months (or) minimum Rs

500 & in multiples of Re. 1 thereafter for minimum one year

Quarterly – Minimum Rs 1500 & in multiples of Re. 1 thereafter for minimum one year

Semi-Annual - Minimum Rs. 3000 & in multiples of Re. 1 thereafter for minimum of 4 instalments.

Annual - Minimum Rs. 5000 & in multiples of Re. 1 thereafter for minimum of 4 instalments.

Despatch of

Repurchase

(Redemption) request

Within 10 business days of the receipt of the repurchase (redemption) request at the authorized Point of

Acceptance of SBI Mutual Fund.

Benchmark Index S&P BSE 100 Index

Dividend Policy Dividend declaration under the dividend option of the scheme is subject to the availability of

distributable surplus and at the discretion of the fund manager, subject to approval of the trustees and

no returns are assured under the schemes.

Fund Manager Ms. Sohini Andani Mr. Mohit Jain is the dedicated fund manager for managing overseas investments of the scheme

Fund Manager –

Tenure of managing

the scheme

7.6 Years. Managing since September 2010.

Trustee Company SBI Mutual Fund Trustee Company Private Limited

Performance of the

scheme

Performance of the scheme (As on April 30, 2018)

Scheme Name 1 year 3 years 5 years Since Inception

SBI Blue Chip Fund - Reg Plan - Growth 14.22 12.62 18.67 11.88

Benchmark: S&P BSE 100 16.75 11.80 15.07 12.43

Please note that with effect May 16, 2018, investment objective, asset allocation pattern and investment strategy of the scheme have been changed. However, the performance given above is as on April 30, 2018 and as per the investment objective, asset allocation pattern and investment strategy prevailing on that date.

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Financial Year performance:

Schemes Portfolio

Holding

(April 30, 2018)

Top 10 Holdings:

Issuer Name % of Net Asset

HDFC BANK LTD. 8.01

LARSEN & TOUBRO LTD. 5.55

CCIL-CLEARING CORPORATION OF INDIA LTD (CBLO) 4.98

MAHINDRA & MAHINDRA LTD. 4.14

ITC LTD. 3.82

NESTLE INDIA LTD. 3.37

ICICI BANK LTD. 3.17

CHOLAMANDALAM INVESTMENT AND FINANCE COMPANY LTD. 2.73

INDUSIND BANK LTD. 2.57

KOTAK MAHINDRA BANK LTD. 2.56

Fund Allocation towards various Sectors:

Sector Name % of Net Asset

FINANCIAL SERVICES 34.39

AUTOMOBILE 11.36

CONSUMER GOODS 9.14

CONSTRUCTION 7.45

ENERGY 6.04

PHARMA 5.40

CBLO 4.98

CEMENT & CEMENT PRODUCTS 3.98

IT 3.75

FERTILISERS & PESTICIDES 3.59

INDUSTRIAL MANUFACTURING 3.04

FUTURES 2.67

METALS 1.93

SERVICES 1.84

-20.00

-10.00

0.00

10.00

20.00

30.00

40.00

50.00

60.00

FY 2013-14 FY 2014-15 FY 2015-16 FY 2016-17 FY 2017-18

Ret

urn

s (%

)

Financial Year

Financial Year Wise Returns

SBI Blue Chip Fund - Reg Plan - Growth Benchmark: - S&P BSE 100

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TELECOM 1.19

HEALTHCARE SERVICES 0.91

CHEMICALS 0.60

CASH AND OTHER RECIVABLES (2.26)

Portfolio Turnover

ratio

(April 30, 2018)

0.96

Website link to obtain

schemes latest

monthly portfolio

holdings

https://www.sbimf.com/en-us/portfolios

Expenses of the

scheme

(i) Load Structure

(ii) Recurring

expenses

Entry Load: Not applicable

Exit Load: For exit within 1 year from the date of allotment - 1%; For exit after 1 year from the date of

allotment - Nil.

The AMC reserves the right to modify / change the load structure on a prospective basis.

The AMC has estimated that upto 2.50% (plus allowed under regulation 52(6A)(c)) of the daily net asset

will be charged to the scheme as expenses. The maximum annual recurring expenses that can be

charged to the Scheme, excluding issue or redemption expenses, whether initially borne by the mutual

fund or by the asset management company, but including the investment management and advisory fee

shall be within the limits stated in Regulations 52 read with SEBI circular no. CIR/IMD/DF/21/2012 dated

September 13, 2012. The AMC may charge the investment and advisory fees within the limits of total

expenses prescribed under Regulation 52 of the SEBI (Mutual Funds) Regulation. Pursuant to SEBI Circular No. SEBI /HO/IMD/DF2/CIR/P/2018/15 dated February 02, 2018, additional expenses under regulation 52 (6A) (c) shall not be levied if the scheme doesn’t have exit load.

Direct Plan shall have a lower expense ratio excluding distribution expenses, commission, etc., vis-à-vis

the Regular plan and no commission shall be paid from Direct plan. Both the plans viz. Regular and Direct

plan shall have common portfolio.

These estimates have been made in good faith as per the information available to the Investment

Manager based on past experience and are subject to change inter-se. Types of expenses charged shall

be as per the SEBI (MF) Regulations. However, as per regulation 52 of SEBI (MF) Regulations, Maximum

limit of recurring expenses under Regulation 52 are as under:

Slab As a % of daily net assets as per Regulation 52 (6) (c)

On the first Rs.100 Crores 2.50%

On the next Rs.300 Crores 2.25%

On the next Rs.300 Crores 2.00%

On the balance of the assets 1.75%

The scheme may charge additional expenses incurred towards different heads mentioned under

regulations (2) and (4), not exceeding 0.20% of the daily net assets.

For investor education and awareness initiative, the AMC or the Schemes of the Fund will annually set apart at least 0.02 percent of daily net asset of the Schemes of the Fund within the maximum limit of the total expense ratio as per SEBI Regulation.

https://www.sbimf.com/en-us/portfolios

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In addition to expenses as permissible under Regulation 52 (6) (c), the AMC may charge the following

additional costs or expenses to the scheme:

• The Goods & Services tax on investment management and advisory fees would be charged in

addition to above limit.

• Brokerage and transaction costs which are incurred for the purpose of execution of trade and is

included in the cost of investment, not exceeding 0.12 per cent in case of cash market transactions

and 0.05 percent for derivative transaction. Further, In terms of SEBI circular CIR/IMD/DF/24/2012

dated November 19, 2012, It is clarified that the brokerage and transaction cost incurred for the

purpose of execution of trade may be capitalized to the extent of 12bps and 5bps for cash market

transactions and derivatives transactions respectively. Any payment towards brokerage and

transaction cost, over and above the said 12 bps and 5bps for cash market transactions and

derivatives transactions respectively may be charged to the scheme within the maximum limit of

Total Expense Ratio (TER) as prescribed under regulation 52 of the SEBI (Mutual Funds) Regulations,

1996. Goods & Services tax on brokerage and transaction cost paid for execution of trade, if any,

shall be within the limit prescribed under regulation 52 of the Regulations Any expenditure in excess

of the said prescribed limit (including brokerage and transaction cost, if any) shall be borne by the

AMC or by the trustee or sponsors.

• In terms of Regulation 52 (6A) (b), expenses not exceeding of 0.30 per cent of daily net assets will be

charged, if the new inflows from such cities as specified from time to time are at least –

(i) 30 percent of gross new inflows in the scheme, or;

(ii) 15 percent of the average assets under management (year to date) of the scheme, whichever is

higher:

Provided that if inflows from such cities is less than the higher of sub-clause (i) or sub- clause (ii),

such expenses on daily net assets of the scheme shall be charged on proportionate basis:

Provided further that expenses charged under this clause shall be utilised for distribution

expenses incurred for bringing inflows from such cities:

Provided further that amount incurred as expense on account of inflows from such cities shall be

credited back to the scheme in case the said inflows are redeemed within a period of one year

from the date of investment.

• Further, GST on expenses other than investment and advisory fees shall be borne by the Scheme

within the maximum limit of annual recurring expenses as prescribed in Regulation 52.

The Mutual Fund would update the current expense ratios on the website atleast three working days

prior to the effective date of the change. Investors can refer https://www.sbimf.com/en-

us/disclosure/total-expense-ratio-of-mutual-fund-schemes for Total Expense Ratio (TER) details.

Any expenditure in excess of the limits specified in the SEBI Regulations shall be borne by the AMC.

Actual expenses for the previous financial year ending March 31, 2018:

Scheme Name Regular Plan Direct Plan

SBI Blue Chip Fund 1.97% 1.12%

Waiver of Load for

Direct Applications

Pursuant to SEBI Circular No. SEBI/IMD/CIR No.4/168230/09 dated June 30, 2009 no entry load shall be

charged for all mutual fund schemes. Therefore, the procedure for waiver of load for direct applications

is no longer applicable.

Tax treatment for the

Investors

Investors will be advised to refer to the details in the Statement of Additional Information & also

independently refer to their tax advisor.

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Daily Net Asset Value

(NAV)

Publication

The NAV will be declared on all business days and will be published in 2 newspapers as prescribed under

SEBI (Mutual Funds) Regulations, 1996. NAV can also be viewed on www.sbimf.com and

www.amfiindia.com.

Monthly Disclosure of

Schemes’ Portfolio

Statement

The fund shall disclose the scheme’s portfolio in the prescribed format along with the ISIN as on the last

day of the month for all the Schemes of SBI Mutual Fund on its website (www.sbimf.com) on or before

the tenth day of the succeeding month.

Annual Report Scheme wise Annual Report or an abridged summary thereof shall be mailed to all unitholders within

four months from the date of closure of the relevant accounts year i.e. 31st March every year.

For Investor

Grievances please

Contact

Registrar SBI Mutual Fund

Computer Age Management

Services Pvt. Ltd.,

(SEBI Registration No.: INR000002813)

Rayala Towers 158, Anna Salai

Chennai - 600002

Tel No.: (044 ) 30407236

Fax : (044) 30407101

Email: [email protected],

Website: www.camsonline.com

Mr. Rahul Mayor

(Investor Relations Officer)

SBI Funds Management Pvt. Ltd.

9th Floor, Crescenzo,

C-38 & 39,G Block,

Bandra Kurla Complex, Bandra (East),

Mumbai – 400 051

Tel: 022- 61793537

Email: [email protected]

Unit holders’

Information

Pursuant to Regulation 36 of the SEBI Regulation, the following shall be applicable with respect to

account statement:

The asset management company shall ensure that consolidated account statement for each calendar

month is issued, on or before tenth day of succeeding month, detailing all the transactions and holding

at the end of the month including transaction charges paid to the distributor, across all schemes of all

mutual funds, to all the investors in whose folios transaction has taken place during that month:

Provided that the asset management company shall ensure that a consolidated account statement every

half yearly (September/ March) is issued, on or before tenth day of succeeding month, detailing holding

at the end of the six month, across all schemes of all mutual funds, to all such investors in whose folios

no transaction has taken place during that period.

Provided further that the asset management company shall identify common investor across fund

houses by their permanent account number for the purposes of sending consolidated account

statement.

In terms of SEBI Circular No. IR/MRD/DP/31/2014 dated November 12, 2014 on Consolidated Account

Statement, investors having Demat account has an option to receive consolidated account statement:

• Investors having MF investments and holding securities in Demat account shall receive a single

Consolidated Account Statement (CAS) from the Depository.

• Consolidation of account statement shall be done on the basis of Permanent Account Number (PAN).

In case of multiple holding, it shall be PAN of the first holder and pattern of holding. The CAS shall be

generated on a monthly basis.

• If there is any transaction in any of the Demat accounts of the investor or in any of his mutual fund

folios, depositories shall send the CAS within ten days from the month end. In case, there is no

transaction in any of the mutual fund folios and demat accounts then CAS with holding details shall be

sent to the investor on half yearly basis.

http://www.sbimf.com/

mailto:[email protected]

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• In case an investor has multiple accounts across two depositories, the depository with whom the

account has been opened earlier will be the default depository.

Before the expiry of one month from the close of each half-year i.e. on 31st March and on 30th Sept, the

fund shall publish the scheme portfolio in the prescribed formats in one national English daily

newspaper and in a newspaper in the language of the region where the head office of the fund is

situated. These shall also be displayed on the website of the mutual fund and AMFI.

Further, before expiry of one month from the close of each half year i.e. on March 31 or September 30,

the Fund shall host a soft copy of half – yearly unaudited financial results on the website of the Fund i.e.

www.sbimf.com and that of AMFI www.amfiindia.com. A notice advertisement communicating the

investors that the financial results shall be hosted on the website shall be published in one national

English daily newspaper and in a newspaper in the language of the region where the Head Office of the

fund is situated.

Note - For further details of the Scheme, investors are requested to refer Scheme Information Document

How this scheme is different from the existing schemes of SBI Mutual Fund:

Scheme Name

Investment objectives

Investment Strategy Asset Allocation

AUM (Rs. In crores) (as on April 30, 2018)

Folio (as on April 30, 2018)

SBI Magnum

Equity ESG

Fund

To provide

investors with

opportunities for

long-term growth

in capital through

an active

management of

investments in a

diversified basket

of companies

following

Environmental,

Social and

Governance (ESG)

criteria

The scheme is likely to have

a comprehensive check list

across parameters from

Governance, Social &

Environmental aspects of the

company’s management of

its affairs. The endeavour

would be to follow ‘ESG

Framework’ in order to delve

deeper into a company’s

management practices,

culture and risk profile which

would thereby help us in

understanding the impact on

long term shareholders.

Each security will be scored,

using publicly available data,

on ESG parameters which can

impact or pose risks to the

long-term sustainability of the

business. External specialist

service providers may be

sought to enable this.

Active weights of a security

will be determined by the ESG

scores. A positive score will

• Equity and equity related instruments of following Environmental, Social and Governance (ESG) criteria (including derivatives and foreign securities)– 80% - 100%

• Other equities and equity related instruments - 0%- 20%

• Units issued by REIT/InVIT - 0% - 10%

• Debt instruments (including securitized debt) - 0% - 20%

• Money Market Instruments - 0% - 20%

2,172.83 348445

11

Scheme Name





enable a positive active

weight, and vice-versa. For

securities lacking data, the

portfolio manager will look to

engage with the company.

Active weights may be capped

to zero.

SBI Equity Hybrid Fund

To provide

investors long term

capital appreciation

along with the

liquidity of an

open-ended

scheme by

investing in a mix of

debt and equity.

The scheme will

invest in a

diversified portfolio

of equities of high

growth companies

and balance the

risk through

investing the rest in

fixed income

securities.

The scheme will invest in a

diversified portfolio of

equities of high growth

companies and balance the

risk through investing the

rest in fixed income

securities.

• Equity and equity related instruments (including derivatives) – 65% - 80%

• Units issued by REIT/InVIT – 0% to 10%

• Debt instruments (including securitized debt) and money market instruments – 20% to 35%

23,599.22 800952

SBI Large &

Midcap Fund

To provide the

investor with the

opportunity of long

term capital

appreciation by

investing in


comprising

predominantly

large cap and mid

cap companies.

The scheme follows a blend

of growth and value style of

investing. The fund will follow

a combination of top down

and bottom-up approach to

stock-picking and choose

companies across sectors.

The scheme will invest in

diversified portfolio of large

cap and mid cap stocks. Large

Cap: 1st -100th company in

terms of full market

capitalization. Mid Cap:101st

to 250th company in terms of

full market capitalization. The

exposure to these will be as

per limits/classification

• Equity and equity related instruments of large cap companies (including derivatives) - 35% - 65%

• Equity and equity related instruments of mid cap companies (including derivatives) – 35% - 65%

• Other equities and equity related instruments – 0% - 30%

• Units issued by REIT/InVIT – 0%-10%

• Debt instruments (including securitized debt) – 0% - 30%

• Money Market Instruments – 0% - 30%

2,320.43 318739

12

Scheme Name





defined by AMFI/SEBI from

time to time

SBI Magnum Global Fund

To provide the

investor with the

opportunity of long

term capital

appreciation by

investing in


comprising

primarily of MNC

companies

The fund will follow a

bottom-up approach to


companies across

sectors/market capitalization

which fall under the criteria

of MNC. MNC Companies will

be those: 1. Major

Shareholding is by foreign

entity, 2. Indian companies

having over 50% turnover

from regions outside India, 3.

Foreign listed Companies

• Equity and equity related companies within MNC space including derivatives and foreign securities – 80-100%


• Units issued by REIT/InVIT – 0% - 10%



3,607.43 469607

SBI

Technology

Opportunities

Fund

To provide the

investor with the

opportunity of long

term capital

appreciation by

investing in a


of equity and

equity related

securities in

technology and

technology related

companies.




companies which are

expected to derive benefit

from development, use and

advancement of technology.

These will predominantly

include companies in the

following industries:

• Technology services,

including IT management,

software, Data and IT

Infrastructure services

including Cloud

computing, mobile

computing infrastructure

• Internet technology

enabled services including

e-commerce, technology

platforms, IoT (Internet of

Things) and other online

services

• Electronic technology,

including computers,

computer products, and

electronic components

• Telecommunications,

• Equities and equity related securities in technology and technology related securities (including derivatives and foreign securities) – 80%-100%

• Other equities and equity related instruments – 0% -20%



• Money Market Instruments – 0%-20%

84.74 15571

13

Scheme Name





including networking,

wireless, and wireline

services, equipment and

support;

• Media and information

services, including the

distribution of information

and content providers

• IT products, hardware and

components like PCs,

Laptops, Servers, Chips,

Semi-conductors etc

SBI

Healthcare

Opportunities

Fund

To provide the

investors with the

opportunity of long

term capital

appreciation by

investing in a


of equity and

equity related

securities in

Healthcare space




companies within the

healthcare space. The

scheme will invest in stocks of

companies engaged in:

1. Pharmaceuticals 2. Hospitals 3. Medical Equipment 4. Healthcare service

providers 5. Biotechnology

• Equities and equity related securities in Healthcare space (including derivatives and foreign securities) – 80%-100%

• Other equities and equity related instruments – 0%-20%

• Units issued by REIT/InVIT – 0% -10%

• Debt instruments (including securitized debt) – 0% to 20%

• Money Market Instruments – 0% -20%

1,012.74 104875

SBI Consumption Opportunities Fund

To provide the

investor with the

opportunity of long

term capital

appreciation by

investing in a


of equity and

equity related

securities in

Consumption

space.





Consumption space. The

scheme will invest in stocks of

companies engaged in:

1. Consumer durables 2. Consumer non-durables 3. Retail 4. Textiles 5. Auto OEM’s 6. Media & entertainment 7. Hotels, resorts & travel

services. 8. Education services 9. Airlines 10. E-commerce 11. Consumer transportation

• Equities and equity related securities in Consumption sector (including derivatives and foreign securities) – 80%-100%

• Other equities and equity related instruments – 0%- 20%


• Debt instruments (including securitized debt) – 0% -20%


589.11 59174

14

Scheme Name





& logistics services.

SBI Focused Equity Fund

To provide the

investor with the

opportunity of long

term capital

appreciation by

investing in a

concentrated

portfolio of equity

and equity related

securities



stock-picking and invest in

companies across market

capitalization and sectors.

The fund will take high

conviction bets and the total

number of securities would

be equal to or under 30.

• Equity and equity related instruments including derivatives – 65% - 100%




2,685.52 278779

SBI Magnum Tax gain Scheme

The prime

objective of

scheme is to deliver

the benefit of

investment in a

portfolio of equity

shares, while

offering deduction

on such investment

made in the

scheme under

section 80C of the

Income-tax Act,

1961. It also seeks

to distribute

income periodically

depending on

distributable

surplus.

Investments in this

scheme would be

subject to a

statutory lock-in of

3 years from the

date of allotment

to avail Section 80C

benefits.

Fund will be investing in

equity & equity related

instruments as also debt

instruments, and money

market instruments (such as

money market, term/notice

money market, repos,

reverse repos and any

alternative to the call money

market as may be directed by

the RBI). Investment shall

also be made in Partly

Convertible Debentures

(PCDs) and bonds including

those issued on rights basis

subject to the condition that

as far as possible the non-

convertible portion of the

debentures so acquired or

subscribed shall be divested

within a period of 12 months.

The balance funds shall be

invested in short term money

market instruments or other

liquid instruments or both.

In line with CBDT guidelines,

the Fund will invest at least

80% of the net assets in

equity and equity related

instruments.

• Equities, Cumulative Convertible Preference Shares, and Fully Convertible Debentures (FCDs) & Bonds – 80 -100%


6,437.01 1170848

15

Scheme Name





SBI Arbitrage Opportunities Fund

To provide capital

appreciation and

regular income for

unitholders by

identifying

profitable arbitrage

opportunities

between the spot

and derivative

market segments

as also through

investment of

surplus cash in debt

and money market

instruments

Market neutral trading

strategy. Arbitrage

opportunities arise due to

market inefficiencies. Fund

seeks to exploit such

inefficiencies that will

manifest as mis -pricing in

cash (stock) and derivative

markets. Fund Manager will

lock into such arbitrage

opportunities seeking to

generate tax efficient risk

free returns.

Fund will not take naked

exposures to stocks i.e. will

not invest in stocks with a

view to generate market

related returns. Exposure to

stocks will be offset by

simultaneous equivalent

exposure in derivatives.

SEBI has also vide circular

DNPD/Cir-29/2005 dated 14th

September 2005 permitted

Mutual Funds to participate

in the derivatives market at

par with Foreign Institutional

Investors (FII). Accordingly,

Mutual Funds shall be treated

at part with a registered FII in

respect of position limits in

index futures, index options,

stock options and stock

futures contracts. These

guidelines have been further

revised vide SEBI circular

DNPD/Cir-31/2006 dated

September 22nd, 2006.

The scheme would be a "pure

arbitrage fund" and would

hold spot market positions

only for the purpose of

arbitrage opportunities and

A) Under normal

circumstances, the

anticipated asset allocation

would be:

• Equity & Equity related instruments – 65 – 85%

• Derivatives including Index Futures, Stock futures, Index options and Stock options – 65% -85%

• Debt instrument & Money Market Instruments 15% -35% (of which securitized debt not more than 10% of the investment in debt instruments)

B) When adequate arbitrage

opportunities are not

available in the Derivative

and Equity markets, the

anticipated alternate asset

allocation on defensive

considerations would be in

accordance with the

allocation given below.

However, in case no

arbitrage opportunity is

available, then 100% of the

remaining investible corpus

(to the extent not deployed

in arbitrage opportunities in

the asset allocation pattern

mentioned above) will be

deployed in short term debt

and money market

instruments with tenure not

exceeding 91 days (including

investments in securitized

debt).

• Equities and equity related instruments – 0%-65%

• Derivatives including Index Futures, Stock Futures, Index Options and Stock Options - 0% - 65%

1,912.17 6112

16

Scheme Name





not to benefit from any

upside potential that the

stocks may provide in the

present or in future. In cases

where gainful arbitrage

opportunities does not exist,

the scheme may hold its

assets in debt and money

market instruments till such

time reasonable arbitrage

opportunities present itself.

The scheme would seize

arbitrage opportunities by

buying stock in the spot

market of NSE or BSE and

simultaneously selling futures

on the same stock in F&O

segment of NSE when the

price of the future exceeds

the price of the stock. It is the

intention of the scheme to

hold the cash/spot market

position and the derivative

position till expiry to realize

the arbitrage.

However, if the opportunity is

available the same positions

will be rolled over to next

month expiry by buying the

current month future and

selling the next month future.

In this instance, the strategy

would be to keep the

underlying, buy back the

current future position and

sell the next month future

position.

• Debt and Money market instruments – 0% - 100%

SBI Magnum Midcap Fund

To provide

investors with

opportunities for

long-term growth

in capital along

with the liquidity of

The scheme follows a blend of growth and value style of investing. The fund will follow a bottom-up approach to stock-picking and choose companies across sectors. The scheme will invest

• Equity and equity related instruments of midcap companies (including derivatives) – 65%-100%

• Other equities and equity related instruments – 0-

4,038.84 482044

17

Scheme Name





an open-ended

scheme by

investing

predominantly in a

well diversified

basket of equity

stocks of Midcap

companies.

predominantly in diversified portfolio of mid cap stocks. Mid Cap means:101st to 250th company in terms of full market capitalization. The exposure will be as per limits/classification defined by AMFI/SEBI from time to time.

35%




SBI Magnum Comma Fund

To generate

opportunities for

growth along with

possibility of

consistent returns

by investing

predominantly in a

portfolio of stocks

of companies

engaged in the

commodity and

commodity related

businesses.

The scheme would at all

times have an exposure of

atleast 80% of its investments

in stocks of companies

engaged in the commodity

and commodity related

businesses (derived from

commodities). The scheme

could invest in companies

providing inputs to

commodity manufacturing

companies.


stocks of companies engaged

in:

1. Oil & Gas

(Petrochemicals, Power,

and Gas etc.),

2. Metals (Zinc, Copper,

Aluminum, Bullion, and

Silver etc.),

3. Materials (Paper, jute,

cement etc.) Agriculture

(Sugar, Edible Oil, Soya,

Tea and Tobacco etc.),

4. Textiles

5. Tea & Coffee

• Equity and equity related securities of commodity and related companies (including foreign securities)– 80% -100%





329.35 55523

SBI Magnum Multicap Fund

To provide investors with opportunities for long-term growth in capital along with the liquidity of an open-ended scheme through an active management of

The scheme will follow a bottom-up approach to stock-picking and choose companies across sectors/styles. The scheme will invest in diversified portfolio of stocks across market capitalization. Large Cap Stocks – 1st -100th company in terms of full

• Equity and equity related instruments (including derivatives)– 65% -100%




5,173.92 503010

18

Scheme Name





investments in a diversified basket of equity stocks spanning the entire market capitalization spectrum and in debt and money market instruments.

market capitalization. Mid Cap:101st to 250th company in terms of full market capitalization. Small Cap: 251st company onwards in terms of full market capitalization. The exposure across these stocks will be in line with limits/classification defined by AMFI/SEBI from time to time

SBI Infrastructure Fund

To provide

investors with

opportunities for

long-term growth

in capital through

an active

management of

investments in a

diversified basket

of equity stocks of

companies directly

or indirectly

involved in the

infrastructure

growth in the

Indian economy

and in debt &

money market

instruments.

The scheme will be

positioned as a sectoral fund

and not as a diversified equity

fund. The scheme will invest

in companies broadly within

the following areas/sectors of

the economy namely – 1.

Airports 2. Banks, Financial

Institutions, Term lending

Institutions and NBFCs 3.

Cement & Cement Products

4. Coal 5. Construction 6.

Electrical & Electronic

components 7. Engineering 8.

Energy including Coal, Oil &

Gas, Petroleum & Pipelines 9.

Industrial Capital Goods &

Products 10. Metals &

Minerals 11. Ports 12. Power

and Power equipment 13.

Road & Railway initiatives 14.

Telecommunication 15.

Transportation 16. Urban

Infrastructure including

Housing & Commercial

Infrastructure 17.

Commercial Vehicles 18.

Industrial Manufacturing 19.

Logistic Service provider

• Equity and equity related securities of companies in infrastructure sector (including foreign securities*) – 80% - 100%





612.84 158413

SBI PSU Fund To provide

investors with

opportunities for

long-term growth

in capital along

The primary strategy of the

scheme would be to invest in

the stocks of the PSU

companies and their

subsidiaries. The scheme may

• Equities of PSU companies and their subsidiaries (including derivatives) – 80% -100%

• Other equities and equity related instruments – 0% -

189.20 38234

19

Scheme Name






an open-ended

scheme through an

active management

of investments in a

diversified basket

of equity stocks of

domestic Public

Sector

Undertakings (and

their subsidiaries)

and in debt and

money market

instruments issued

by PSUs and others.

invest in quasi PSUs

/subsidiaries of PSUs: 1.

which could be part of PSU

index 2. defined by

management control or

ability to appoint key

managerial personnel and not

necessarily by equity stake of

51% (but minimum PSU/

Central govt / state govt

stake of 35% and highest

among others is

required).The scheme would

endeavor to identify market

opportunities and at the

same time would sufficiently

diversify its equity portfolio

and control liquidity risks and

non-systematic risks by

selecting well researched

stocks which have growth

prospects on a long and mid-

term basis in order to provide

stability and possibility of

returns in the scheme

Investment in equities would

be done through primary as

well as secondary market,

private placement / QIP,

preferential/firm allotments

or any other mode as may be

prescribed/ available from

time to time.

20%




SBI Small Cap

Fund

To provide

investors with

opportunities for

long-term growth

in capital along


an open-ended

scheme by

investing

predominantly in a

well diversified

The scheme follows a blend

of growth and value style of

investing. The scheme will

follow a bottom-up approach

to stock-picking and choose

companies within the small

cap space. Small Cap means:

251st company onwards in

terms of full market

capitalization. The exposure

will be as per

• Equity and equity related instruments of small cap companies (including derivatives) – 65% - 100%




• Money Market

836.32 46824

20

Scheme Name





basket of equity

stocks of small cap

companies.

limits/classification defined

by AMFI/SEBI from time to

time

Instruments – 0% - 35%

SBI Banking

and

Financial

Services

Fund

The investment

objective of the

scheme is to

generate long-term


to unit holders

from a portfolio

that is invested

predominantly in

equity and equity

related securities of

companies

engaged in banking

and financial

services.

However, there can

be no assurance

that the investment

objective of the

Scheme will be

realized.

The Scheme aims to

maximize long-term capital

appreciation by investing

primarily in equity and equity

related securities of

companies engaged in

Banking and Financial

services. The portfolio

manager will adopt an active

management style to

optimize returns. The scheme

would invest in Banks as well

as Non-banking Financial

Services companies,

Insurance companies, Rating

agencies, Broking companies,

Microfinance companies,

Housing Finance, Wealth

Management, Stock/

commodities exchange etc.

Financial services companies

are firms that are engaged in

providing non-banking

financial services to

customers. The classification

of Financial service

companies will be largely

guided by AMFI sector

classification. The indicative

list of industry under financial

services includes:

• Housing Finance

• Micro Finance

• Stock broking & Allied

• Wealth Management

• Rating Agencies

• Asset Management

Companies

• Insurance Companies

• Equity and equity related securities of companies engaged in banking & financial services - 80% - 100%





500.32 57624

21

Scheme Name





• Stock/ Commodities

Exchange

• Other NBFC’s

• Any other company

which may derive 70% or

more of its revenue from

companies engaged in

financial services

SBI Equity

Saving Fund

The investment

objective of the

scheme is to

generate income by

investing in

arbitrage

opportunities in the

cash and derivatives

segment of the

equity market, and


through a moderate

exposure in equity.

However, there is

no guarantee or

assurance that the

investment

objective of the

scheme will be

achieved.

The net assets of the Scheme

are invested primarily into

equity and equity related

instruments including equity

derivatives. The Scheme

invests rest of the assets into

debt and money market

instruments for liquidity and

regular income. The expected

returns from this Scheme can

be attributed to the following

return drivers:

■ Cash and Futures Equity

Arbitrage: The scheme

endeavors to achieve its

primary objective of

generating income by

exploitation of arbitrage

opportunities in equities

market.

■ Net Long Equity: The

Scheme may take limited long

only exposures to equity

stocks in order to generate

market related returns.

■ Debt and Money Market

Instruments: The Scheme

may invest upto 35% of the

net assets of the Scheme into

debt and money market

instruments. This portion of

the scheme assets is

discretionary to provide

A) Asset allocation under normal circumstances:

Equity and Equity related

Instruments including

derivatives - 65% - 90%

Out of which:

- Cash future arbitrage: 15%-70%; Net long equity

exposure: 20%-50%

• Debt and Money Market Instruments (including margin for derivatives) – 10% - 35%

• Units issued by REITs & InvITs – 0% - 10%

B) Asset Allocation when adequate arbitrage opportunities are not available in the Derivative and Equity markets,

The alternate asset allocation

on defensive considerations

would be in as per the

allocation given below:

Equity and Equity related

Instruments including

derivatives - 30% - 70%

Out of which:

- Cash future

2,084.51 41184

22

Scheme Name





liquidity into the scheme,

management of derivative

margins and accrual of

regular income.

arbitrage: 0%-45%; Net long equity

exposure: 20%-50%

• Debt and Money Market Instruments (including margin for derivatives) – 30% - 70%

• Units issued by REITs & InvITs – 0% - 10%

SBI Nifty

Index Fund

The scheme will

adopt a passive

investment

strategy. The

scheme will invest

in stocks

comprising the

Nifty 50 index in

the same

proportion as in the

index with the

objective of

achieving returns

equivalent to the

Total Returns Index

of Nifty 50 index by

minimizing the

performance

difference between

the benchmark

index and the

scheme. The Total

Returns Index is an

index that reflects

the returns on the

index from index

gain/ loss plus

dividend payments

by the constituent

stocks.

The scheme will adopt a

passive investment strategy.


stocks comprising the Nifty

50 index in the same

proportion as in the index

with the objective of

achieving returns equivalent

to the Total Returns Index of

Nifty 50 index by minimizing

the performance difference

between the benchmark

index and the scheme. The

Total Returns Index is an

index that reflects the returns

on the index from index gain/

loss plus dividend payments

by the constituent stocks.

The scheme will primarily

invest in the securities

constituting the underlying

index. However, due to

changes in underlying index

the scheme may temporarily

hold securities which are not

part of the index. For

example, the portfolio may

hold securities not included in

the respective underlying

index as result of certain

changes in the underlying

index such as such as

reconstitution, addition,

Stocks comprising the Nifty

50 Index – 95% - 100%

Cash and Money Market

Instruments – 0% - 5%

282.10 7263

23

Scheme Name





deletion etc. The fund

manager’s endeavour would

be to rebalance the portfolio

in order to mirror the index;

however, there may be a

short period where the

constituents of the portfolio

may differ from that of the

underlying index.

These investments which fall

outside the underlying index

as mentioned above shall be

rebalanced within a period of

30 days.

SBI Contra Fund

To provide the

investor with the

opportunity of long

term capital

appreciation by

investing in a


of equity and

equity related

securities following

a contrarian

investment

strategy.


combination of top-down and




contrarian investment theme.

• Equity and equity related instruments of companies which follow the contrarian investment theme (including derivatives) – 65%-100%



• Debt instruments (including securitized debt) – 0%-35%


1,781.77 277322

Please refer to Common Equity KIM for guidelines, application forms and terms & conditions (including SIP, STP, SWP, Trigger, etc.)

Date: May 16, 2018

asset management company: sbi funds management … - sbi blue... · 2018-05-16 · asset management...

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